Embraer (NYSE:ERJ) Shares Up 5.8% on Earnings Beat

Embraer S.A. (NYSE:ERJ)’s stock price rose 5.8% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $45.38 and last traded at $45.36. Approximately 751,455 shares changed hands during trading, a decline of 39% from the average daily volume of 1,236,136 shares. The stock had previously closed at $42.89.

The aerospace company reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.47. Embraer had a net margin of 8.24% and a return on equity of 11.61%. The firm had revenue of $2.31 billion for the quarter, compared to the consensus estimate of $2.21 billion.

Wall Street Analyst Weigh In

ERJ has been the topic of several recent research reports. UBS Group downgraded shares of Embraer from a “neutral” rating to a “sell” rating and upped their target price for the stock from $29.00 to $32.00 in a research note on Tuesday, November 19th. TD Cowen raised shares of Embraer to a “strong-buy” rating in a research report on Thursday, December 19th. StockNews.com downgraded shares of Embraer from a “buy” rating to a “hold” rating in a research report on Saturday, February 22nd. Finally, Bank of America increased their price objective on shares of Embraer from $40.00 to $55.00 and gave the company a “buy” rating in a research report on Thursday, November 21st. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, Embraer presently has an average rating of “Moderate Buy” and a consensus target price of $40.50.

Institutional Investors Weigh In On Embraer

A number of large investors have recently modified their holdings of ERJ. Ninety One North America Inc. grew its position in shares of Embraer by 14.5% in the 4th quarter. Ninety One North America Inc. now owns 84,451 shares of the aerospace company’s stock valued at $3,098,000 after buying an additional 10,665 shares during the last quarter. Stifel Financial Corp grew its position in shares of Embraer by 33.0% in the 3rd quarter. Stifel Financial Corp now owns 75,219 shares of the aerospace company’s stock valued at $2,661,000 after buying an additional 18,656 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of Embraer in the 3rd quarter valued at $10,611,000. Thrivent Financial for Lutherans purchased a new position in shares of Embraer in the 3rd quarter valued at $981,000. Finally, Stonehage Fleming Financial Services Holdings Ltd purchased a new position in shares of Embraer in the 4th quarter valued at $384,000. 34.65% of the stock is owned by hedge funds and other institutional investors.

Embraer Price Performance

The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.76 and a current ratio of 1.56. The stock’s 50-day moving average is $40.25 and its 200 day moving average is $37.05. The stock has a market capitalization of $8.74 billion, a PE ratio of 17.50 and a beta of 1.71.

Embraer Company Profile

Embraer SA designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft.